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Navco, Mobile: A Decade of Shifting Home Values and Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Navco, a neighborhood in Mobile, Alabama, has experienced significant changes in its real estate market over the past decade. This analysis examines the fluctuations in homeownership rates, average home values, and rental trends from 2013 to 2024, as well as projections for the future.
Homeownership in Navco has declined notably since 2013. The percentage of residents owning homes decreased from 66% in 2013 to 42% in 2022. This downward trend in homeownership coincided with fluctuations in average home prices. In 2013, the average home price was $46,378, which increased to $72,098 by 2022, representing a 55.5% increase over nine years. Despite this overall increase, the housing market experienced volatility, with prices dropping to a low of $44,175 in 2015 before rebounding.
The relationship between federal interest rates and homeownership rates in Navco shows an interesting pattern. As interest rates remained low from 2013 to 2016 (ranging from 0.09% to 0.40%), homeownership rates initially remained stable. However, as interest rates began to rise more significantly from 2017 onwards (reaching 1.68% in 2022), homeownership rates in Navco declined sharply. This suggests that other local factors may have had a stronger influence on homeownership than national interest rates during this period.
Conversely, the percentage of renters in Navco has increased substantially, from 34% in 2013 to 58% in 2022. This shift towards renting coincides with fluctuations in average rent prices. In 2013, the average rent was $929, which increased to $989 by 2022, representing a modest 6.5% increase over nine years. However, rent prices peaked at $1,056 in 2021 before slightly decreasing. The growing renter population, coupled with relatively stable rent prices, suggests a competitive rental market in Navco.
In 2023 and 2024, Navco's housing market continued to evolve. The average home price in 2023 was $75,449, showing a 4.6% increase from 2022. In 2024, the average home price further increased to $80,947, representing a 7.3% rise from 2023. These price increases occurred despite high federal interest rates of 5.02% in 2023 and 5.33% in 2024, indicating strong demand in the local housing market.
Looking ahead, predictive models suggest that average home prices in Navco will continue to rise over the next five years, potentially reaching around $95,000 by 2029. This projection is based on the consistent upward trend observed since 2015. Average rent prices are also expected to increase, albeit at a slower rate, potentially reaching approximately $1,100 by 2029. These predictions assume continued economic stability and steady population growth in the area.
In summary, Navco has experienced a significant shift from homeownership to renting over the past decade, with homeownership rates declining by 24 percentage points from 2013 to 2022. Despite this shift, average home prices have shown resilience and growth, particularly in recent years. The rental market has expanded considerably, with more stable price increases. These trends, combined with recent data and future projections, suggest that Navco's real estate market is likely to remain dynamic and potentially lucrative for investors in both the rental and homeownership sectors.
